Sunday, August 19, 2012

Coming new Accord must be a hit for Honda

Randy LeBlanc has owned Honda Accords for more than 20 years. The real estate agent in New Orleans' suburbs bought a used 1988 in the early 1990s and got a new Accord in 2001. Now, 125,000 miles later, LeBlanc, 41, and his wife need a new sedan. He's 90% sure it won't be a Honda.He's shopped Toyota, Hyundai and Kia lately; is leaning toward Toyota. He says Honda makes him move up too many trim levels to get now-common features such as Bluetooth, and that the Accord is too noisy.
Noise "has been a knock on Honda for how many years now?" LeBlanc asks. "It doesn't seem to be a concern of theirs."
Honda now has standard Bluetooth on some models, such as the redone 2012 CR-V, but the 2012 Accord requires spending for the leather-clad EX-L trim to get Bluetooth.
So LeBlanc is likely to join others who've forsaken Accord, once a must-drive for family car shoppers.
The onus is on the redesigned 2013 Accord, due this fall, to make up that lost ground. Honda previewed its look in January with a coupe concept (above). It will be smaller and lighter, Honda says, with lots of crash-avoidance technology. And the hybrid returns.
But the midsize sedan competition is fiercer than ever. Accord was deposed by Toyota Camry as No. 1 in sales in 2001, but held No. 2 for nine years before low inventory after Japan's tsunami last year let Nissan Altima push it to No. 3. Then it slipped to fourth behind Ford Fusion, also being redesigned this year. Accord was 1-in-6.7 family cars sold as recently as a year ago; now it's about 1-in-10.

As sales fell this year, Honda threw upwards of $1,000 in dealer cash atop discount financing to keep interest in the 5-year-old car. But rivals ratcheted up appeal, too. A redone Camry rolled out in October, and by this spring, Nissan threw up to $2,250 on the Altima's hood ahead of the redesigned 2013's intro.
It worked: Sales through March boomed 39% for Altima and 37% for Camry -- while Accord fell 8%.
Honda spokesman Chris Martin says slow sales this year are "absolutely a concern, but you have to look at the competitive marketplace." He notes that Camry just had a full model change, Hyundai Sonata and Kia Optima had full changes in 2011 and "the (Volkswagen) Passat entered the marketplace as an actual, credible contender. So if you look five years ago, a lot of these people weren't playing seriously."
An unanswered question is just how different the next Accord will be. We've only seen the concept, while rivals such as Nissan and Ford have gone the full monty with their redesigns.
Honda typically is secretive about new models, but perhaps it should have made an exception this year. There's four months before Honda plans to release Accord details -- a lot of time for shoppers to compare such sedans as the new Altima, new Fusion, new Malibu, Camry, Sonata and Optima in buying research that likely will exclude Accord.
"You're going to be fighting for buzz with (the redone) Altima and Fusion, and the rest of the (Chevrolet) Malibus will start coming out," AutoPacific analyst Dave Sullivan said.
Martin says sedan sales are not a "zero-sum game" and that all the redesigns will pull in new shoppers -- a rising tide can lift all sedans.
But Honda had very different results with its two key redesigns last year. Will the next Accord be a Civic or a CR-V?
Honda stumbled with the redesigned Civic, widely dinged for a cheap interior and subpar handling. Sales rose 19% through March, but outpaced the market by just 6% — some came thanks to dealer incentives a redesigned car shouldn't need. By contrast, sales of the redone CR-V, out in December, are are up 30% with zero incentives.
Honda's Martin says he's confident the 2013 Accord will put Honda "back into a segment leadership position" in many areas.
"We are bringing a four-cylinder engine with direct-injection and all-new CVT transmission. We're going to have a very powerful and efficient (V-6) engine with a six-speed automatic transmission. So (the) '13 Accord is going to make some major strides in fuel economy and feature content and level of technology and safety."